Tata's Jaguar/Land Rover, In Secret Plea For 1 Billion Pound Government Loan.

[Sprint XR8]

JAGUAR LAND ROVER (JLR) is in secret talks with the government for a £1 billion loan, just nine months after Tata, the Indian conglomerate, bought the luxury-car marque.

The request demonstrates the sharp downturn in the global car market, which has already pushed a handful of the big car manufacturers to the edge of bankruptcy.

The speed of the economic decline has not just hit the motor industry. A number of large British-based industrial groups are also considering asking the government for financial support. If help is not given tens of thousands of jobs are at stake.

According to one government official familiar with the approach made by JLR, Gordon Brown is studying the request and an answer could be made in the next fortnight.

Tata paid $2.3 billion for JLR and financed the acquisition with a $3 billion (£2 billion) bridging loan. Since then sales of new cars have plunged which has caused big problems with the cash flow needed to service debt payments.

It comes at a time when Tata – one of India’s most successful companies – is also facing financial issues. It paid $11.3 billion 22 months ago for steelmaker Corus and since then the metal price has collapsed. Similarly, shares in Tata Consulting Services, its American-listed IT business, have also tumbled, as have shares in Tata Motors.

Ratan Tata, the conglomerate’s chairman, has put on hold further acquisitions amid the difficulty in raising bank finance and in the face of the economic slowdown.

http://business.timesonline.co.uk/to...cle5213217.ece

[Gobes32]

Alan Mulally is either a genius blessed with tremendous foresight or he is the luckiest son of a bi#$h getting around. If Ford survive the next 12-18 months it will be because of that man.

[King Nothing]

Geez, talk about a case of perfect timing by Ford.

[vztrt]

Originally Posted by Gobes32

Alan Mulally is either a genius blessed with tremendous foresight or he is the luckiest son of a bi#$h getting around. If Ford survive the next 12-18 months it will be because of that man.

I think he can see when a company is goin down the toilet, he did bring Boeng back from the dead. All I can say is I'm glad he is running the Ford op.

[F6 R-Spec]

I actualy thought that it was a bad move from FOMOCO (selling) at the time.

But know

THANK GOD FORD SOLD THEM.

[XR6_190]

I too thought they were mad for selling JLR, Aston Martin as well, could of been the best thing they could have ever done, that said, it would be really sad to see either of these important companies go down.

[Buzz Box]

I personally was more said to see Aston Martin go but Jaguar and Land Rover ehhhhh

[XR8putts]

Originally Posted by Buzz Box

I personally was more sad to see Aston Martin go but Jaguar and Land Rover ehhhhh

Ditto.

Also, I question the accuracy of the article.

[Wretched]

Why should Tata be asking the British Government (I assume this is the case based on the article) for money? Why can't they ask the Indian government?
I thought Tata was the largest and richest company/family in India.
Seems a little suss to me.

[Sprint XR8]

Jaguar and Land Rover Looking For Government Bailout
http://www.themotorreport.com.au/133...nment-bailout/
Car manufacturers everywhere are suffering under the double whammy of the global credit crisis and stalled sales. It comes as no surprise then that luxury marques are also feeling the brunt of the economic storm. British manufacturers Jaguar and Land Rover, recently acquired by Tata, have now joined the ranks of those in desperate need of financial aid in order to keep the wheels turning.

Tata is seeking £1 billion (AUD$2.4 billion) in loans from the British government and is expecting a decision from Prime Minister Gordon Brown in the near future.

A spokesperson for Jaguar and Land Rover outlined the current situation:

“The automotive industry is facing unprecedented trading conditions as a direct fall out of the banking crisis and turbulence in financial markets and we are of course keeping government appraised of the impact on our business.”

Some may wonder at Tata going cap in hand to the British government looking for help, after having only just put down USD$2.3 billion (AUD$3.8 billion) on acquiring the brands in June. Isn’t that a bit cheeky? Of course, few, including Tata, could have predicted just how bad things would get.

With most major markets now stumbling into recession, auto manufacturers face a torrid couple of years ahead. What the future now holds for Jaguar and Land Rover looks decidedly uncertain. Let us know what you think: should the British government lend a hand or should Tata be left to carry the consequence of its decision to purchase these companies?

[chevypower]

Both brands are both very big, and very British. Unfortunately "big" and "British" don't go well together anymore, I always liked them. This is what could happen in Australia if people sell their Falcons and Commodores and buy a Toyota Yaris. Or in America if people sell their locally made big cars and buy a Jetta. So the Brits need to buy Jags and LRs, Aussies need to buy Falcodores, and Americans need to buy American-made cars from the big 3.

[Rev28K]

Well I guess that means that the funding for the Force India F1 team is rooted.

[Bossxr8]

Originally Posted by Wretched

Why should Tata be asking the British Government (I assume this is the case based on the article) for money? Why can't they ask the Indian government?
I thought Tata was the largest and richest company/family in India.
Seems a little suss to me.

Because Jag and LR manufacture all their vehicles in the UK, so the money would help keep British jobs in place, not to save Indian ones, but I get what your saying.

[Homer1]

Originally Posted by Rev28K

Well I guess that means that the funding for the Force India F1 team is rooted.

Force India isn't owned by Tata. It's owned by Vijay Mallya who owns the Kingfisher brand (airline and beers amongst the stuff they do)